Quarter of listings slash asking rents as tenant demand dips

Rightmove reports that 25% of rental properties now see price reductions—the highest since 2018—indicating strained affordability. Although average rents outside London rose by 0.6% to £1,349 per month, this marks the smallest rise since 2020. In London, rents increased by 0.1%, hitting a record £2,698 per month.

Boosted supply (11% more new listings and 18% more total availability year-over-year) and reduced tenant demand (7% lower than last year) are easing market pressure. Nevertheless, a supply-demand imbalance persists, with enquiries still double pre-pandemic levels.

Factors like increased buy-to-let lending (+32% from last year) and more renters transitioning to homeownership (partly due to better mortgage rates and a stamp duty rush) are influencing market dynamics. Regional supply-demand variations remain, with London achieving the best balance.

Experts anticipate limited impact from the Renters’ Rights Bill but suggest landlords will increasingly focus on reliable long-term tenants.